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Demand Side Theory
November 20, 2008
(under edit : This note is to be an outline for a possible book by this
title)
The supply side theory has
been far less difficult to define with precise concepts, than has
demand side theory. This note will examine why this remains the
case.
Supply side theory has a precise notion of supply. The notion is
that supply is what is "supplied" by producers. Production-based
systems, such as the US auto industry, are extroverted. The
production is offered to the markets under
advertising pressure where great costs and "wasted" resources are used
to structure the market, from the supply side. Demand is then that part
of the "real" supply
which is consumed by the market.
In the current supply side theory, there can be no market demand that
is not defined in terms of commodities supplied. Introverted
needs, real needs that are not expressed, are not recognized.
These introverted needs may become stunted and repressed, while
predatory actions addict consumers to false substitutes. These
actions are always intentional, and have developed legal protections
from the otherwise reasonable retribution by consumers. Legal
recourse to personal damage due to false advertising has all but
disappeared.
The limitation of supply side theory is a classical limitation that is
found also in scientific reductionism and in other forms of what may be
called "fundamentalism". How may a system recognize something
that is outside of the system's experience? Do such systems
develop "immune response" mechanisms that protect the system from the
pressure of novelty? Is this immunity felt internally by the
fundamentalist as a justification for misunderstanding the intent of
someone whose honest feelings are "seen" as inconsistent with
fundamentalist viewpoints.
For example, scientific reductionism is often thought to discount
evidence for any
other than evolutionary forces as being the cause of genetic
change. The biological systems have layers of response mechanism
for addressing the novelty arising from natural reality. This mechanism
would appear to arise from both evolutionary push forces, causing
genetic change, and pull forces, also in theory accounting for a
conjectured intelligent design to a pull, or anticipatory, force.
Demand side theory must take into account the multi-coherence not only
of natural reality but of the views of humans.
Additional notes are made in 24. *<*>.
The empowerment of anticapatory respones by biological systems *<*>